ANC: Heads must roll over ‘alarming’ VBS Mutual Bank report

The ANC has welcomed a final investigation report into large-scale fraud at VBS Mutual Bank, saying heads must roll where there was any wrongdoing.

The report, commissioned by the South African Reserve Bank (SARB), recommended that more than 50 individuals be criminally charged and held liable in civil proceedings, following the bank’s implosion earlier this year.

This includes the bank’s former executives and their associates, shareholder executives, politicians and their relatives and auditors who signed off on the bank’s “fraudulent” financials.

The report was compiled by advocate Terry Motau, who was appointed to head an investigation into the bank’s collapse.

“The ‘Great Bank Heist’ report is alarming and highlights the roles of a range of individuals and institutions in these heinous events,” said ANC spokesperson Pule Mabe.


READ MORE: New report backs criminal charges against VBS ‘captors’

“The report points towards grave abuse of authority and office as well as worrying instances of corruption.”

Mabe said the Reserve Bank was now expected to act decisively and with speed to process the recommendations in the report.

“The ANC maintains that where there [has] been wrongdoing by individuals and institutions, heads must roll, and the law must take its cause without fear or favour. The manner in which authorities process this report, will be an important indication on our nation’s commitment to renewal and ethical leadership.”

In a statement on Wednesday, the Reserve Bank said the evidence in the report was not a reflection of the innocence or guilt of any party, as not all parties had been given the opportunity to respond to the evidence.

It has previously been reported that between 2015 and early 2018, when the Reserve Bank placed VBS under curatorship due to a liquidity crisis, the chair of the bank, Tshifhiwa Matodzi — together with his co-directors and ally Robert Madzonga — facilitated the looting of nearly R2-billion.

Both have steadfastly maintained their innocence.

The Public Investment Corporation (PIC) welcomed the report and said it had already taken a number of steps against its two delegated directors on the VBS board, Ernest Nesane and Paul Magula.

READ MORE: Further PIC bloodletting in wake of VBS looting

PIC spokesperson Sekgoela Sekgoela said they were no longer employed there. Maqula was dismissed for incompetence in April and Nesane resigned.

The Financial Sector Conduct Authority debarred the men after the PIC applied in terms of the Financial Advisory and Intermediary Services Act.

The PIC was in the process of applying to have them declared delinquent directors and, in consultation with the Prudential Authority, will lay criminal charges against them.

With Nesane, the PIC was in the process of applying to have him struck from the roll of attorneys.

Sekgoela said the report made mention of testimony to the effect that PIC CEO Daniel Matjila was to be paid a bribe of R5 million.

Motau could not make any definitive finding on this but recommended further investigation by authorities.

Matjila responded: “I emphatically reject any suggestion that I may have received R5 million to facilitate further funding for VBS Mutual Bank. In fact, the portfolio management committee of the PIC, turned down an application to put more money into VBS Mutual Bank, two days before VBS was placed under curatorship,” he said.

“Such allegations are without merit and no facts or evidence could be placed before Advocate Motau’s panel of investigation to substantiate these allegations, which I regard as malicious. However, should an investigation be instituted into these allegations, I am willing and ready to subject myself to the process.” — Fin 24

Subscribe to the M&G

These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever.

The Mail & Guardian is a proud news publisher with roots stretching back 35 years, and we’ve survived right from day one thanks to the support of readers who value fiercely independent journalism that is beholden to no-one. To help us continue for another 35 future years with the same proud values, please consider taking out a subscription.

Jenna Etheridge
Jenna Etheridge
Journalist, writer and editor
Kyle Cowan
Kyle Cowan

Kyle Cowan is an investigative journalist at News 24.

Related stories

Advertising

Subscribers only

Medical aids blame external costs as fees increase beyond inflation

Medical aid is becoming more of a luxury for many South Africans, and it’s not about to get any better

Mahikeng compounds its mess

The ailing town that wasted R2-billion appoints a municipal manager rated ‘basic’, the lowest level

More top stories

Parliament owes South Africa an apology on state capture —...

The speaker told the Zondo commission she doesn’t know why the legislature woke up to state capture so late, but believes this won’t happen again

Cape Town fire ‘largely contained’, evacuation orders remain in place

Authorities confirmed the fire had been largely contained by early Monday afternoon, although reports suggest the fire had jumped the road near Tafelberg Drive

Zondo says break-in will not intimidate commission

The deputy chief justice said it was not clear if the burglary and a recent shooting were more than criminality, but vowed no one would deter the inquiry

European heavyweights face criticism over ‘cynical’ Super League

The 12 founding clubs of the breakaway competition have faced backlash from the football community
Advertising

press releases

Loading latest Press Releases…